Takeaways

• New Forests has launched its first global natural capital fund and aims to raise A$1 billion from institutional investors.
• The strategy will invest across forestry, agriculture, carbon projects, and biodiversity-related opportunities worldwide.
• The fund is designed to provide long-term financial returns while supporting climate, biodiversity, and sustainable land-use outcomes.

Nature-based investment manager New Forests has announced the launch of its first global natural capital strategy, marking a significant step in the firm's expansion into diversified environmental investment opportunities.

The newly introduced New Forests Global Natural Capital Fund, known as the Global Landscape Opportunities (GLO) strategy, is targeting A$1 billion (approximately USD 707 million) in capital commitments. The fund will focus on a broad range of natural capital investments, including forestry, agriculture, carbon projects, and biodiversity-related assets.

Headquartered in Sydney, New Forests has been investing in natural assets since 2005. The company manages funds linked to forests, farmland, conservation projects, carbon initiatives, and supporting infrastructure. With the launch of the GLO strategy, the firm aims to offer investors access to a diversified portfolio spanning multiple regions and environmental markets.

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According to the company, interest in natural capital is growing as investors seek assets that can generate stable returns while contributing to environmental sustainability. The new fund is designed to meet that demand by combining traditional land-based investments with emerging opportunities in ecosystem services.

Mark Rogers, Chief Executive Officer of New Forests, said investors are increasingly looking for large-scale investment opportunities that provide exposure to natural capital. He noted that these assets are becoming an important component of resilient portfolios because they can potentially deliver long-term value while supporting climate stability, biodiversity protection, and responsible land management.

Under the proposed allocation framework, the majority of the fund's capital, i.e., between 60% and 80%, will be invested in developed markets such as the United States, Canada, Europe, the United Kingdom, Australia, and New Zealand. Up to 30% may be allocated to more established Latin American markets, including Brazil, Uruguay, and Chile. The remaining portion, capped at 20%, could be directed toward Southeast Asia, other Latin American regions, and Africa.

The strategy will invest in a wide variety of assets, including sustainable forestry assets, agricultural land, food production systems, carbon investments, and opportunities linked to biodiversity markets and ecosystem services.

The fund will be available exclusively to institutional investors, including pension funds, insurance companies, family offices, endowments, and foundations.

David Shelton, Global Head of Investments at New Forests, highlighted the financial appeal of natural capital assets. He said these investments often provide long-term return potential, can help protect portfolios against inflation, and typically have a low correlation with traditional investment classes. He added that they also offer exposure to growing global demand for food, fibre, renewable energy, and environmental services.

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The launch of the Natural Capital Fund comes at a time when investors worldwide are paying greater attention to sustainability-linked assets. As environmental considerations become increasingly integrated into investment strategies, New Forests is positioning itself to capture growing demand for diversified, nature-based investment solutions that combine financial performance with positive environmental outcomes.

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Source: ESGtoday